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Georgia Shacks produces small outdoor buildings. The company began operations this year, producing 2,000 buildings and selling 1,500. A variable costing income statement for the year follows. During the year, variable production costs per unit were $800 for direct material, $300 for direct labor, and $200 for overhead. 2. Prepare an absorption costing pre-tax income statement. Note: Do not use a negative sign with your answers with the exception of a net loss which should have a negative sign. 3. Explain the difference between the incomes for the second year under the two systems. Note: Do not use a negative sign with your answers with the exception of a net loss which should have a negative sign. The difference is equal to units x$ per unit The difference is equal to units x$ per unit 1. Prepare a variable costing pre-tax income statement. Note: Do not use a negative sign with your answers with the exception of a net loss which should have a negative sign. The company president is upset about the net loss because he wanted to borrow funds to expand capacity. a. Prepare a pre-tax absorption costing income statement. Note: Do not use a negative sign with your answers with the exception of a net loss which should have a negative sigl b. Explain the source of the difference between the pre-tax income and loss figures under the two costing systems